General Dynamics awarded $16.8M task order for TNE Sustainment FY25 by the Air Force

Contract Overview

Contract Amount: $16,878,056 ($16.9M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $46.4K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER - TNE SUSTAINMENT FY25

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: TASK ORDER - TNE SUSTAINMENT FY25 Key points: 1. Value for money is difficult to assess due to the lack of competition. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, given the sole-source nature and cost-plus contract type. 4. Performance context is for sustainment services, indicating ongoing operational support. 5. The contract falls within the IT services sector, specifically computer systems design. 6. The award represents a small portion of overall Department of Defense IT spending.

Value Assessment

Rating: fair

The contract's value of $16.8 million for a one-year period is within a typical range for sustainment services of this nature. However, without competitive bidding, it is challenging to benchmark the pricing against market rates or similar contracts. The Cost Plus Fixed Fee (CPFF) structure means that while the contractor's fee is fixed, the total cost can fluctuate based on actual expenses, which warrants careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could have resulted from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's negotiating position is also weakened in a sole-source scenario.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive sustainment services for its TNE systems. The services delivered will ensure the continued operational readiness and effectiveness of critical Air Force IT infrastructure. The geographic impact is primarily within Arizona, where the contractor is located. Workforce implications include the potential for continued employment for General Dynamics personnel supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Cost-plus contract type can lead to cost overruns if not managed tightly.
Lack of transparency in the justification for sole-source award.

Positive Signals

Award to an incumbent contractor may ensure continuity of services.
Sustainment services are critical for maintaining operational capabilities.
Fixed fee component provides some cost predictability for the contractor's profit.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This is a large and competitive market, with significant government spending allocated to IT support and sustainment. The market size for IT services to the federal government is in the tens of billions annually. This contract represents a specific task order for sustainment, a common and essential component of IT lifecycle management.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this specific contract are limited. The focus appears to be on a large, established prime contractor, potentially limiting the broader impact on the small business IT ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers. Accountability measures will be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance metrics and reporting requirements. Transparency is limited due to the sole-source nature of the award, but contract details should be available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force IT Modernization Programs
Department of Defense Sustainment Contracts
General Dynamics IT Services Portfolio
Computer Systems Design Services

Risk Flags

Sole-source award
Cost-plus contract type
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. TASK ORDER - TNE SUSTAINMENT FY25

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical spending pattern for TNE Sustainment services with General Dynamics Mission Systems, Inc.?

Historical spending data for this specific task order is not readily available in the provided snippet. However, General Dynamics Mission Systems, Inc. is a large defense contractor with a significant history of supporting various Department of Defense programs. To assess historical spending patterns, one would need to examine past contract awards and task orders issued to this contractor for similar sustainment services, potentially across different Air Force or DoD components. Analyzing trends in award values, contract types, and durations over several fiscal years would provide insight into the consistency and scale of this type of support. Without specific historical data for 'TNE Sustainment FY25', a broader analysis of General Dynamics' sustainment contract portfolio would be necessary to identify any patterns or significant deviations.

How does the $16.8 million award compare to similar IT sustainment contracts within the Air Force?

Comparing this $16.8 million award requires access to a broader dataset of Air Force IT sustainment contracts. Generally, sustainment contracts can vary significantly in value depending on the complexity of the systems being supported, the duration of the contract, and the scope of services. For large-scale IT infrastructure or complex weapon systems, annual sustainment costs can range from hundreds of thousands to tens of millions of dollars. Given that this is a one-year task order for 'TNE Sustainment FY25', $16.8 million appears to be a substantial but not necessarily outlier figure for supporting critical Air Force IT systems. A direct comparison would necessitate identifying contracts with similar service descriptions (e.g., system maintenance, software updates, technical support) and contract types (e.g., CPFF) awarded within the same fiscal year or recent past.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for IT sustainment?

The primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for IT sustainment are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than could be achieved through a competitive bidding process. The government has less leverage to negotiate favorable terms. Secondly, the CPFF structure, while providing flexibility, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee, meaning that if costs escalate beyond initial estimates, the total contract value increases. Effective oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What is the track record of General Dynamics Mission Systems, Inc. in delivering IT sustainment services to the federal government?

General Dynamics Mission Systems, Inc. (GDMS) has a well-established and extensive track record of delivering a wide range of IT and mission-critical services to the federal government, including the Department of Defense and the Air Force. They are known for their work in areas such as command and control systems, cybersecurity, intelligence, surveillance, and reconnaissance (ISR), and complex system integration. Their experience spans decades, and they frequently hold large, long-term contracts for sustainment, modernization, and operational support. While specific performance metrics for individual contracts are often proprietary or detailed in past performance reviews, GDMS is generally considered a major, capable provider in the defense IT sector, accustomed to meeting stringent government requirements.

What are the potential implications for program effectiveness given the sole-source award and CPFF contract type?

The implications for program effectiveness are mixed. On the positive side, awarding to an incumbent like General Dynamics, especially on a sole-source basis, can ensure continuity of operations and minimize disruption, which is critical for sustainment. The contractor likely has deep institutional knowledge of the TNE systems. However, the lack of competition might reduce the incentive for the contractor to innovate or operate with maximum efficiency, as the pressure to outperform rivals is absent. The CPFF structure, while allowing for necessary cost reimbursement, requires diligent government oversight to ensure that costs remain reasonable and that the contractor is not incentivized to incur unnecessary expenses. Effective program management and clear performance standards are paramount to ensure the TNE systems remain effective and operational.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 85257

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,113,655

Exercised Options: $17,113,655

Current Obligation: $16,878,056

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $987,504

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA714624D0001

IDV Type: IDC

Timeline